American Market Closed Slightly High on Christmas Eve

December 25, 2008

Global News & Information Global Capital Research Group

Major Global Indexes Dow Jones Index rose by 48.99 points or 0.58% and
closed at 8468.48 points.
Closing Margin (%)
American stock market closed in advance on Christmas
Dow Jones 8468.48 0.58
Eve, with Dow Jones Index up by 48.99 points or 0.58% at
S&P 500 868.15 0.58
8468.48 points; S&P 500 ascended by 4.99 points or
UK:UKX 4216.59 -0.93
0.58% at 868.15 point, and NASDAQ Index surged by
Nikkei 225 8517.1 -2.37
3.36 points or 0.22% to 1524.90 points.
Hang Seng 14184.14 -0.26

American durable goods indent declined under

Major Price Indicator
expectation.
Closing Margin (%) American durable goods indent slid by 1.0% in November
WTI Crude Oil 35.35 -9.31 as Influenced by reduction of aeroplane and auto indent.
COMEX Gold 848 0.93 In October it declined by 6.9%, and by 8.4% after the
LME Copper 2845 -0.87 adjustment. If the adjustment not taken into consideration,
LME Aluminum 1537 -1.47 durable goods indent is forecasted to be down by 2.5%,
BDI Index 774 -1.28 better than the expected 3.0%. It is a reflection of
manufacturing industry, and its further decline indicates
Hong Kong Industries output of manufacturing industry will be at downside in the
Closing Margin (%) coming months. Meanwhile, it is also closely related to
Info & Tech 863.00 2.71 consumption. Generally, durable goods indent touching
Raw Material 4934.46 2.47 the bottom means the same with consumption status.
Industrial
754.72 2.44
Goods Personal income and expenditure decreased in
Finance 2287.87 -0.28 America.
Energy 6750.85 -0.74 Personal income declined in November due to
Telecom deteriorated economy and lessened enterprise profit. It
1555.38 -1.44
Service was down by 0.2% after the seasonal adjustment. As
economic prospect is gloomy, consumers all cut
Performance in Recent 5 Days expenditures to save their deposits. Consequently,
personal expenditure was lowered by 0.6%, and ratio of
personal deposit against personal disposable income
rose from 2.4% of October to 2.8% in November.
Meanwhile, economic slowdown also eased inflation
pressure; PCE in November declined by 1.1% mom, and
core PCE was equal to that of the previous month; seeing
from year-on-year statistics, November’s PCE was up by
--- Hang Seng Index ---- SSE Composite Index 1.4%, and core PCE by 1.9%. Year-on-year core PCE
growth is key factor for FED to judge inflation and
1.5%-2.0% is considered safe.
As inflation level is within the range, FED can rest more assured with quantitative easing
monetary policy.

330,000 persons in America competed for 8,000 positions in Barack Obama

government.
“Iron rice bowl” is becoming hot cakes amid financial crisis. Official application in America is at
the summit for the time being. As of December 22, the number of persons who applied for
positions in Barack Obama government had broken 330,000, whereas the hired ones are
below 8,000.

Hang Seng Index plunged 36.65 points or 0.26% at 14184.14 points.

Hang Seng Index fluctuated and lowered by 36.65 points or 0.26% at 14184.14 points on
closing, and Hang Seng China Enterprises Index was frustrated by 34.85 points or 0.45% at
7685.17 points.

Property sub-index outperformed Hang Seng Index.

Property sub-index was against the trend on Wednesday; Cheung Kong (0001.HK) and Sino
Land (0083.HK) grew by 2.53% and 5.39% respectively, while Sun Hung Kai Properties
(0016.HK) slightly decreased by 0.08%. Of the inland real estate shares, China Overseas
Land & Investment (0688.HK) fell by 1.50%, whereas Guangzhou R&F Properties (2777.HK)
and Country Garden Holdings (2007.HK) ascended by 1.48% and 1.6%.

Chinese-funded banks were bearish.

Financial sub-indexes outperformed, while the Chinese-funded financial stocks went bearish
following the A-share market. HSBC Holdings PLC (0005. HK) and HANG SENG BANK
(0011.HK) rose by 0.27% and 3.45% respectively; of the six Chinese-funded banks, Bank of
China (601988) closed even, while others declined within the range of 0.36%-2.53%.
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Investment Rating System

Performance of stock or sector relative to TX Free-float Index over next 6 months after research publications

Rating Remark
1 Buy Relative performance over TX Free-float
Index >15%

2 Overweight Relative performance over TX Free-float Index 5% ~

15%

3 Neutral Relative performance over TX Free-float Index -5%

~ 5%

4 Underweight Relative performance over TX Free-float Index -5%

~ -15%

5 Sell Relative performance over TX Free-float Index

<-15%

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